APAC air cargo demand continues to suffer in May: AAPA

Asia Pacific air cargo business continues to suffer in May from “subdued demand conditions, driven by weak business confidence levels”, according to the Association of Asia Pacific Airlines (AAPA).
Preliminary air cargo traffic figures for May showed that in freight tonne kilometres (FTK) terms, air cargo demand fell by 7% year on year in May. Offered capacity rose by 6%, leading to an 8.5 percentage point decline in the average international freight load factor to 60.1% for the month. Subhas Menon, AAPA director general, said, “Air cargo demand remained soft, reflecting the prevailing weak global economic conditions and in particular, the slowdown in the manufacturing sector. He added, “Trade tensions are likely to weigh down on cargo markets for some time to come whereas air travel demand is expected to demonstrate resilience in spite of the headwinds in the external environment.” The AAPA said that international passenger markets continue to grow strongly amidst the restoration of flights in the region, resulting in increased belly capacity.